Orientation and absorptive capacity towards sustainability: a missing link between sustainability and performance

Abstract

PurposeThis study investigates economic sustainability through orientation and absorptive capacity.Design/methodology/approachThe researchers developed a conceptual framework based on vigorous literature for this investigation. This study targeted managers from Pakistan's SME sector as respondents and employed cross-sectional data. In total, the authors based this study's findings on 192 valid cases.FindingsThe structural equation modeling (SEM) results highlight that innovation orientation (IO), customer orientation (CO), supplier orientation (SO), network orientation (NO) and absorptive capacity (AC) have significant effects on economic sustainability (ES). Moreover, this study's findings show that ES significantly predicts environmental sustainability (ENS). Finally, the results also demonstrate that ES and ENS positively and substantially affect financial performance (FP).Practical implicationsThis study's findings help SMEs continue sustainable business practices by avoiding adverse environmental effects and ongoing climate changes. This study's findings contribute also to the manufacture of eco-friendly environmental products to reduce the contamination of the environment. Financial institutions and policymakers would boost SME owners' capacity and the obtainability of financial resources to improve Pakistani SMEs’ sustainable economic and environmental performance.Originality/valueThis study's findings help to enrich environmental and economic sustainability and, more significantly, for developing countries.

Digital Transformation as a Driver of Sustainability Performance—A Study from Freight and Logistics Industry

“…Although previous studies have reported a positive association between digital competence and innovation performance, particularly with reference to the importance of strategic alignment in using sustainability goals to achieve competition [111][112][113][114], there are few studies which examine the specific issue of how DT can affect sustainability innovation from the perspective of information processing. Equally, there is little research that inductively examines the role of digital adaptability.…”